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Bitcoin analysis for 06/10/2017

Bitcoin analysis for 06/10/2017:

Axel Weber, who previously served as the head of the Bundesbank, a central bank in Germany, commented on Bitcoin during an event in Zurich. He stated that his skeptical approach to the cryptocurrencies "probably comes from experience as a banker in the central bank," and later acknowledged that Bitcoin only partially meets the common definition of currency: "An important function of the currency is the method of payment, it must be generally accepted, it must be a measure of value and subject to exchange. Bitcoin is just a currency for exchanging and performing transactions". Weber criticized the cryptocurrency market in late 2015. He is said to have noticed that the Bitcoin model may fail because "there will always be a boom".

The president of UBS becomes the last person from a large financial institution, which should discuss the issue of the cryptocurrency as the growing popularity of Bitcoin and Blockchain technology is starting to be perceived as a threat to the well established financial system. The question remains, whether the progression of expansion of Blockchain technology will not lose its pace and will become a real, global accepted alternative that will revolutionize the world financial system.

Let's now take a look at the Bitcoin technical picture on the H4 time frame. The market has bounced from the weekly pivot at the level of $4,143 and now is heading towards the local high at the level of $4,444. The market conditions are oversold, so the bounce might even target the level of $4,661 in a case of extension. The larger time frame trend remains up, but the main Elliott Wave scenario still indicates an uncompleted corrective cycle to the downside.